Both Gedling borough MPs have backed the Chancellor’s Spring Statement, which aims to ease the cost of living for households nationwide.
Chancellor Rishi Sunak has announced that National Insurance starting thresholds will rise to £12,570 from July, meaning workers will keep more of what they earn before they start paying personal taxes.
A typical employee will save more than £330 a year, while the typical self-employed person will save more than £250.
Both borough MPs backed the Chancellor’s plan and said that people across Gedling would benefit from the government’s plan to deliver on the biggest cut to personal taxes in over a quarter of a century.
Gedling MP Tom Randall said: “Our economy is recovering well from the Coronavirus pandemic: there are record job vacancies and unemployment is back at pre-pandemic levels. But global inflationary pressures the steps the Government is taking to sanction Russia are not cost free – the biggest impact at home will be on the cost of living for working families.
“That is why this government has published a new Tax Plan to reduce and reform taxes, including cuts to fuel duty, cuts to the basic rate of Income Tax and cuts to National Insurance for 30 million working people – meaning Gedling residents can keep more of what they earn.
“This Tax Plan delivers the biggest cut to personal taxes in over a quarter of a century – simplifying our system in the long-term whilst we deliver immediate relief for cost-of-living pressures, benefiting families and businesses across Gedling.”
Sherwood MP Mark Spencer said: “The situation in Ukraine reminds us that the United Kingdom’s security and ability to be a force of good in the world is in large part based on the strength of our economy.
“That is why this Government is going further to strengthen our economy, publishing a new Tax Plan to reduce and reform taxes – including cutting fuel duty, cutting the basic rate of Income Tax and cutting National Insurance for 30 million working people – meaning people can keep more of what they earn.
“This Tax Plan delivers the biggest cut to personal taxes in over a quarter of a century – simplifying our system in the long-term whilst we deliver immediate relief for cost-of-living pressures.”
Gedling Labour criticised today’s announcements.
In a tweet they wrote that Sunak’s Spring Statement would “bring about the biggest tax burden in 70 years, the biggest hit to household income on record and would imposing a real-terms benefits cut in that’ll push 400,000 more people into poverty.”
They added: “The truth is, people can no longer afford the Conservatives.”
Labour’s shadow chancellor Rachel Reeves said the chancellor had failed to appreciate the scale of the cost of living crisis facing workers and pensioners.
She told MPs: “In eight days, people’s energy bills will be rising by 54%, two weeks today the chancellor’s tax hike will start hitting working people and their employers.
“His National Insurance tax rise was a bad idea last September and he’s admitted it’s an even worse one today.”
